This document helps in understanding the current and future global and regional insurance market trends.

1. Insurance Trends for 2016

2. 2Copyright © Capgemini 2013. All Rights Reserved
Presentation Title | Date | Financial Services
Insurers are increasingly leveraging the
Internet of Things (IoT)
$ 1.7 Trillion
Global IoT market in 2020
Telematics
Wearables
Connected
Homes
Source: Capgemini Financial Services Analysis, 2015; “Internet of Things Market to Reach $1.7 Trillion by 2020: IDC”, The Wall Street Journal, June 2, 2015

3. 3Copyright © Capgemini 2013. All Rights Reserved
Presentation Title | Date | Financial Services
Auto-insurers are shifting toward Usage-Based
Insurance
PAYD Pay-as-you-drive
PHYD Pay-how-you-drive
MHYD Manage-how-you-drive
36%
Percentage of Auto
insurance carriers who
will be using
telematics-based UBI
by 2020
Source: Capgemini Financial Services Analysis, 2015; "Usage-Based Insurance and Telematics", National Association of Insurance Commissioners, October 8, 2015

4. 4Copyright © Capgemini 2013. All Rights Reserved
Presentation Title | Date | Financial Services
Insurers are using Big Data to improve claim
processing capabilities
Adoption of Big Data
is concentrated in
three regions of North
America, Europe and
Asia
Faster identification of events
Automated claim assessment
Easier calculation of loss
reserves
Fraud minimization
Source: Capgemini Financial Services Analysis, 2015;

5. 5Copyright © Capgemini 2013. All Rights Reserved
Presentation Title | Date | Financial Services
Non-traditional firms are entering into
insurance industry
Since the majority of the
non-traditional firms have
a global presence, the
trend is expected to be
adopted globally
Partnerships & alliances
Joint-ventures
Acquisitions
Source: Capgemini Financial Services Analysis, 2015

6. 6Copyright © Capgemini 2013. All Rights Reserved
Presentation Title | Date | Financial Services
Insurers have started to use Aerial and Digital
Imagery for assessing property
$114.7
bn
The trend has its
origins in the U.S
Estimated market of
global Unmanned
Aerial Vehicles in 2023
Quicker and accurate
estimation
Estimation in zones
restricted for
physical visits
Estimation after a
catastrophe
Source: Capgemini Financial Services Analysis, 2015; “Unmanned Aerial Vehicle (UAV) Market to Reach US$ 114.7 Billion by 2023”, Satellite Markets & Research, February 13, 2014

7. 7Copyright © Capgemini 2013. All Rights Reserved
Presentation Title | Date | Financial Services
Insurers are applying Gamification to simplify
complex and tedious processes
Improves customer engagement & loyalty
Better assessment of customers’ risk profile
63%
Percentage of
respondents who
relate to gamification
as fun and rewarding
(based on a survey conducted
by JWT Intelligence)
Source: Capgemini Financial Services Analysis, 2015; “Gamification in Insurance: Customer Engagement and Beyond”, Anthony R. O’Donnell, Insurance Innovation Reporter, July 24, 2014

8. 8Copyright © Capgemini 2013. All Rights Reserved
Presentation Title | Date | Financial Services
The demand for Cyber Insurance is increasing
Most of the cyber
insurance policies
cover the U.S.
$575
bn
Global financial
impact of cyber crime
in 2014
Businesses can transfer the cyber risk for a premium
Value-added services can help businesses prevent/handle a cyber attack
Source: Capgemini Financial Services Analysis, 2015; "Cyber Risk Insurance Market Outlook With AIG, ACE Ltd, Chubb Corp., Zurich Insurance Co. Ltd, Marsh and Beazley Group Ltd.", PR Newswire, November 18,
2015

9. 9Copyright © Capgemini 2013. All Rights Reserved
Presentation Title | Date | Financial Services
Peer-to-peer insurance can provide insurance
at a lower cost
In mature markets,
internet connectivity
and commoditized
product lines are the
key drivers
In developing markets,
reduced premium cost
is an incentive for
adoption
Low cost
Speedy claims processing
Source: Capgemini Financial Services Analysis, 2015

10. 10Copyright © Capgemini 2013. All Rights Reserved
Presentation Title | Date | Financial Services
Insurers are using mHealth apps to monitor
and improve the health of customers
$26
bn
Estimated market
revenue of mHealth
apps in 2017
100 k
Number of healthcare
apps published in
2014
Enables to judge a
patient’s risk profile
Reduces
administrative costs
Facilitates cross-
selling & up-selling
Reduces health care
spend of customers
Source: Capgemini Financial Services Analysis, 2015; “mHealth App Developer Economics 2014”, research2guidance, May 6, 2014

11. 11Copyright © Capgemini 2013. All Rights Reserved
Presentation Title | Date | Financial Services
Insurers are using adherence apps, which helps
customers to regularly follow their medication
Reminds
Counsels
Reinforces
Educates
Simplifies
50%
Medication adherence rate for conditions
such as depression in 2011
Source: Capgemini Financial Services Analysis, 2015

12. The information contained in this presentation is proprietary.
© 2013 Capgemini. All rights reserved.
www.capgemini.com
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